If you employ people, some significant changes to UK employment law are already here, with more coming later this year and into 2027.
The Employment Rights Act 2025 is being introduced in stages, so rather than one big changeover date, there are several important dates for employers to be aware of.
Here are the key changes to have on your radar.
6th April 2026: Changes already in force
Several new employment rights came into effect in April.
One of the biggest changes for employers is Statutory Sick Pay (SSP). The previous waiting period has been removed, meaning eligible employees can now receive SSP from the first day of sickness absence. The Lower Earnings Limit has also been removed, bringing more lower-paid workers into the SSP system.
Employees also gained day-one rights to paternity leave and unpaid parental leave, rather than having to complete a qualifying period first.
Other April changes included stronger whistleblowing and collective redundancy protections, alongside the creation of the new Fair Work Agency.
If you haven't already reviewed your payroll procedures and employment policies following these changes, now is a good time to do so.
October 2026: More changes are coming
From 1st October, the time limit for bringing most Employment Tribunal claims will increase from three months to six months.
Then, from 30th October, employers will face stronger responsibilities around workplace harassment.
Employers will be required to take all reasonable steps to prevent sexual harassment of employees. There will also be a new obligation not to permit employees to be harassed by third parties, such as customers or clients.
This makes reviewing policies, staff training and reporting procedures particularly important.
January 2027: A major change to unfair dismissal
From 1st January 2027, the qualifying period for ordinary unfair dismissal protection will fall from two years to six months.
Importantly, this won't just affect people recruited after January. Employees who already have six months' continuous service on 1 January 2027 will gain protection from that date.
The existing cap on compensatory awards for unfair dismissal will also be removed.
For small employers, this makes good recruitment, probation procedures, performance management and record keeping more important than ever.
And there is more to come
Further measures are expected during 2027, including changes concerning flexible working, bereavement leave including pregnancy loss, enhanced dismissal protection during pregnancy and following maternity leave, and new rights around guaranteed hours and shift notice.
Some of the exact implementation dates are still to be confirmed.
What should small employers do now?
Don't wait until the next deadline arrives. Review your employment policies, payroll processes and record keeping now, and seek appropriate HR or employment law advice where necessary.
And remember, changes to employment rights can have a knock-on effect on payroll and your business finances too.
If you'd like help making sure the bookkeeping and payroll side of your business is organised and ready for change, speak to Lucie and the team at LEO Bookkeeping.
This article provides general information and should not be regarded as employment law advice.
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